I’m not sure I have met anyone who isn’t confused by the in’s and outs of how they figure this one out!
But we are going to attempt to shed some light on the subject for you and hopefully you leave this blog informed and having a better understanding of how to calculate and claim child support!
So they (being Family services) calculate who pay’s child support and who receives child support through an 8 step formula.
Adjusted taxable income – self support = Child support income
Which poses the next question what is adjusted taxable income?
Adjusted taxable income can include:
In laments terms it includes all of your income whether it is a car provided by a business (fringe benefits) or lump sum super payments or income from a superannuation stream (stock market, property etc).
Family tax benefit, childcare benefit and childcare rebate are not taxable payments.
For example $70,000. + $40,000 = $111,000 (combined income total)
$70,000/$111,000 = 0.63
$40,000/$111,000 = 0.36
63% – 24% = 39% which is called the “child support percentage”
This result will determine if a parent pays or receives child support.
If there is a negative percentage that parent is assessed to receive child support.
If it is a positive percentage, that parent is assessed to pay child support.
This is decided by multiplying the positive child support percentage by the costs of the child. Which is then payable to the negative percentage parent.
All in all, there is some sense to it and a general sense of fairness once you wade through all the equations and tables.
It really does come down to though, how you probably already assumed it worked. And that is the parent who earns more but has the children in their care less often will probably end up paying child support. If you have bad credit then consider applying for a no credit check loan.
If you have a 50 50 care/work relationship then you will probably find your child support split to be somewhat similar.
If you want to figure out your child support costs or payments you can use the free online rate estimator on the Centrelink website.
Practising being kind and supportive to one another and your financial positions will make you all winners in the end!
The Department of Human Services is responsible for collecting and enforcing payments that have been registered with them to collect.
The DHS can arrange salary deductions or regular payments to them. If debt is accrued or the parent who should be paying child support is not paying, then they have the power to take them to court.
If the DHS was responsible for collecting on your behalf and your case was registered with them, then they will be responsible for collecting the debt on your behalf.
If you had a private agreement then you will be responsible for collecting the debt from the paying parent yourself. Apply for a bad credit loan with Jacaranda Finance if you do not have a good credit history.
There is always help at the other end of the phone you can contact the:
Young entrepreneur Daniel Wessels is the CEO and Founder of Jacaranda Finance. Although only in his early thirties, Wessels’ determination and adaptability has led him to successfully pioneer a range of other enterprises both here and abroad.Read More
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